Home Selling in 52405>Question Details

Miles, Other/Just Looking in Cedar Rapids, IA

My house is valued 3% (about 6 K) more than the loan balance I currently have on my house. I am relocating

Asked by Miles, Cedar Rapids, IA Sun Mar 22, 2009

and need to sell my house asap. What are my options? I do not have have savings to dig into to pay a realtor the usual 6% fee. Can I call the bank and have them take ownership of the house? The house if worth more than the loan. I am not sure if I can find a buyer soon enough to manage a sale by owner.

HELP!

Miles

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Answers

5
Miles
Values have dropped 29% in the last year.

Without knowing all the details, you need to have a professional analyze your situation and present options with the pros and cons.

The short story:
1. If you are relocating will your new employer pay part of the cost?
2. If you are just moving (not job related) do you have to move? The worst time to sell is in a buyer's market.
3. There are a couple of options:
If you would really prefer to stay in the house, try to get the lender to modify your loan by lowering the interest rate.
If you really need to move, then you can examine either a short sale (with lender approval), or other alternatives.
There are significant pros and cons of which you should be aware BEFORE you commit to a plan.
1 vote Thank Flag Link Mon Aug 10, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Miles,

I’m sorry to hear of your distress. Signing over your deed to the bank is only one option you have (and it's an option that can substantially hurt your credit). You might also consider the following:

*Rent your property
*Sell and bring cash to closing (you should consult a financial expert on what cash or liquid assets you could use for closing - this might help you pay a commission.
*Home Affordable Modification (check out MakingHomeAffordable.gov). There are incentive programs to help with the costs of selling and relocation.
*But FIRST, call your bank and see if they’ll work with you! Lenders might (to avoid foreclosure) will give you a break, given you have a plan to catch up and pay the loan (i.e. listing your property and using the proceeds for the payoff).
Feel free to contact me for any details on the above.

Chelsea@ChelseaSellsHomes.com
319-558-6169
Chelsea Stillmunkes/Licensed in Iowa/Coldwell Banker Hedges Realty/5408 Blairs Forest Way/Cedar Rapids/IA
0 votes Thank Flag Link Wed Feb 17, 2010
Have you considered renting your property out?

If you were to rent it out you would continue to be able to write off the interest portion of your mortgage payment and you would also be able to write off 1/27th of the value of the structure each year.

This would help offset any difference between your mortgage payment and any rents received. I know it doesn't seem like it at this moment but home values will rise once again and if you wait long enough you will be able to sell your home and make a profit.
0 votes Thank Flag Link Mon Aug 10, 2009
Miles,
I would be happy to meet and discuss your alternatives. Feel free to contact me!

John Beltramea
Broker/Owner
Elite GMAC Real Estate
Cedar Rapids, IA 52402
319-393-3190
John@Elitegmacrealestate.com
IOWA Licensed Real Estate Broker
0 votes Thank Flag Link Mon Aug 10, 2009
NO there are several options made available.

a) Listing agent flat fee service
b) If you give the home back to the bank ruins your credit for years !
c) Lease
d) Lease option purchase

Lynn911
~ National Featured Realtor and Consultant, Lecturer regarding Credit Repair, Mortgage Loan Officer
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sun Mar 22, 2009
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